MF Investment Advice (Lump sum)

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prash88_ch asked 8 years ago

Hi Sreekanth, I am 30, married with a just born kid, & do not major liabilities as of now. I am planning to invest total 1Lakh equally in below mutual funds post budget. Pls review and provide me with you suggestion on it. Pls advice better funds/sectors.

SBI Blue Chip Dir G = 20K
ABSL India GenNext Fund Dir G = 20k
L&T Emerging Business Fund Dir G = 20k
Franklin Build India Fund Dir G = 20k
HDFC Balanced Fund Dir G = 20k

Thanks, PC

3 Answers

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Sreekanth Staff answered 8 years ago

Dear PC, I am assuming that this is for your long-term goals.. Did you make any investments in mutual funds? Or Is this your first investments in MFs?

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prash88_ch answered 8 years ago

Hi Sreekanth, Thank you for the response. I have started investing in MFs recently. And most of them have been in ELSS funds. I have been a conservative investor with most of the money parked in FDs. Now i feel i can take low to moderate risks in market. Hence starting to invest slowly in MFs. Below is my complete portfolio as of now ...

Axis LTE fund - Reg : Lumpsum 30k, Invested in Jan 17
DSPBR Tax Saver - Dir : SIPs of 5k since Aug 17
FT Tax Shield - Dir : SIP of 3k since Aug 17
HDFC Balanced Fund - Dir : SIP of 2k since Aug 17

I am looking to invest for both long term (>10 yrs, for eg kid's higher education, marriage etc) & middle term (3-5 years, for eg purchasing house etc) goals. Request you to pls advise me on the funds (and the amount) as i have mentioned in my previous message. Also, pls help to provide a better combination of funds, if you see any. Thanks, PC

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Sreekanth Staff answered 8 years ago

Dear PC, For medium term goals of around 5 years, suggest you to consider Equity Savings funds and/or Balanced funds Plus some amount in MIP Funds. Ex : Birla Equity Savings fund , HDFC balanced fund, SBI MIP floater, Birla MIP II Wealth 25 plan fund etc., For long term goals + tax saving, you may continue your investments in ELSS funds, the listed three ELSS funds are good ones, but suggest you to check their portfolio overlaps and if the % of overlap among these funds is on the higher side say >50% them you may skip that from your portfolio. You may add one mid-cap fund to your portfolio. Ex : HDFC Mid-cap opp fund / L&T Emerging Business Fund / Franklin Prima Fund / Mirae Emerging bluechip fund etc., Kindly read : https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/calculate-kids-education-goal-amount/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-schemes-categorization-latest-guidelines/